A returning feature from Soul Edge that was absent from the first Soulcalibur is the inclusion of Extra Weapons.

Out of the 25 selectable characters, 13 are granted a third costume: Astaroth, Cassandra, Ivy Valentine, Mitsurugi, Nightmare, Raphael, Seung Mina, Sophitia, Taki, Talim, Voldo, and Xianghua.

It introduces a story set in an alternate world, in which the player moves in a map divided into "regions" (named after stars) and fights enemies to gain experience points (which raise the "rank" of the character) and money (which can be used to buy weapons, art, costumes and videos).

The console versions of the game feature Necrid, a new character created by Todd McFarlane, and one of three platform-exclusive characters: Heihachi Mishima from Tekken on the PlayStation 2, Link from The Legend of Zelda on the GameCube, and Spawn from the comic book series of the same name by McFarlane on the Xbox.

Cloud Strife from Final Fantasy VII was originally intended to fill Heihachi's spot on the PlayStation 2 version, but the licensing deal fell through at the last moment.

The knight in azure armor, Nightmare, and his followers were successful in collecting enough souls and were about to start the restoration ceremony on the ruins of the once-proud Ostrheinsburg Castle.

In a matter of time, the cult was defeated, and Nightmare stood in front of the young warriors while wielding Soul Edge.

Still, the blade held a strong bond, and every night, it took control of his body and absorbed souls of those nearby.

Around those times, various warriors came into contact with the blade's remaining fragments, revealing Soul Edge's ultimate survival.

Driven by the need to either possess or destroy the evil sword, each warrior embarks on a new journey, while Nightmare starts his rampage anew, seeking souls to gain the power to restore Soul Edge once again...[13] At E3 2001, Namco showed a trailer for the "next chapter" of Soulcalibur.

[14][15] In August 2001, Namco confirmed that Soulcalibur II was in development and would be simultaneously available for the PlayStation 2, GameCube, and Xbox.

[5][23][24] It includes all game modes from the original releases, as well as support for online-only gameplay via PlayStation Network and Xbox Live.

[25] In addition, in Japan, having the game data allows for two virtual items and a costume to be available for free in Soulcalibur: Lost Swords.

[5] The original version of SoulCalibur II received critical acclaim, earning it the average scores of 91.3% for the PlayStation 2,[28] 92.3% for the GameCube,[27] and 91.6% for the Xbox.

[54] By July 2006, the GameCube version of Soulcalibur II had sold 850,000 copies and earned $32 million in the United States.

Next Generation ranked it as the 69th highest-selling game launched for the PlayStation 2, Xbox or GameCube between January 2000 and July 2006 in that country.